CIS REFUNDS UK
Valentis Accountants • 10 min read
If You’re Here… Chances are, you’ve stared at your bank statement thinking, “Why’s there always less money than the job said?”
Maybe you’ve worked your backside off on a site—packing up tools late, chasing invoices, haggling with suppliers—only to have HMRC play keep-away with the cash you’ve earned. CIS: It’s the world’s most convoluted savings account you never asked for. This isn’t the HMRC help page, and it’s not a dry accounting lecture. This is advice forged on deadlines, dirty overalls, and real-life headaches.
The Construction Industry Scheme (“CIS”) is HMRC’s way of nicking a chunk of your money before you even see it. You do a job, send an invoice, and rather than your full pay, some of your money—20%, or even 30% if you’re not registered—heads straight to the tax man.
Imagine CIS as that mate who insists on “holding onto your wallet for safekeeping,” swears they’ll return every penny, but you have to fill out three forms and nag them for weeks to see it again.
Myth #1
“Once HMRC takes the money, you’ll never see it again.”
Not true. CIS refunds go out every day—but only for those who’ve kept paperwork tidy and submitted the right stuff.
Myth #2
“You can fudge a few details. HMRC won’t notice.”
They will. And their software likes to find cock-ups. A single pound off, a missing statement, and your payment sits in limbo.
Myth #3
“You’ll only get paid back at year-end.”
Companies can offset CIS against PAYE each payroll month—don’t wait till April to sort mistakes. Sole traders, yes, you need to file Self-Assessment, then wait for the return.
You’re a one-man band, or you and a mate split everything—even the tax headaches. You file for a refund using your Self-Assessment tax return. Keep every Payment and Deduction Statement from every contractor who’s paid you.
If the CIS tax taken exceeds your tax bill, you get the extra back—or HMRC sets it against other debts.
You’re incorporated. CIS deductions for companies are tracked through PAYE returns. Every month, add your cumulative CIS deductions to the Employer Payment Summary (EPS).
At tax year-end, claim refunds if the CIS tax withheld outweighs your PAYE and NIC liabilities.
You hire subs, you also get hired. It’s double the admin, sorry. You track deductions you make (as a contractor) and deductions you suffer (as a subbie). The two pots never mix—different processes, timelines, and paperwork.
Real Story
Dave’s a groundworker in Leeds. He’s got three regular contractors. One lost a CIS statement in February. Instead of “hoping it turns up,” Dave calls, gets a replacement, and files every slip, neat as a pin. Refund processed in 3 weeks. His mate, who didn’t follow up, waited 4 months.
Real Story
Sarah owns a small electrical business. For two months, she didn’t enter any EPS. At the end of the year, her CIS refund was put on hold. It took two hours to put together the ledgers again, and two more months to get the money back. Lesson: Even when you’re busy, update your payroll.
“How fast did you get your last CIS refund?”
If your answer is “a month,” you did it right. “Six months?” Let’s talk about your paperwork.
“Does your accountant really know CIS?”
Some don’t. Always quiz them: have they fixed refunds for contractors in your trade before?
“Ever had HMRC hold your refund for ages?”
Yes—if EPS was off by a tenner, or paperwork was messy. Tidy up and chase them weekly.
“Is it better to be a sole trader or an Ltd company for CIS?”
It depends, mate. Sole traders get paid quicker, Ltd companies get options for other offsets, but more admin.
2–4
Weeks
Sole traders once filed and passed checks
~1
Month
Ltd companies after year-end if all matches
2–6
Months
With complications or missing paperwork
Respond same day to HMRC requests. Include all evidence in one tidy bundle. Keep reconciliation schedules short and easy to follow.
No, but if you don’t, contractors dock 30% instead of 20%, so you’re basically gifting HMRC a loan.
Never. Payroll route for companies, Self-Assessment for individuals.
Companies offset against PAYE as you go—means more cash, faster.
As far as statutory amendment windows (usually a couple of years). Late claims are harder and need more paperwork.
Every time. They’ll pay themselves before paying you.
Get missing statements in writing. Document every chase. If they won’t help, escalate to HMRC with your own evidence.
No—HMRC hates rounding and guesses. Give actual figures.
OUR PROCESS
Onboarding
We map your contractors, chase formats and files, and clean up ledgers from the start.
Monthly housekeeping
We check every posting, reconcile CIS versus statements, file EPS/FPS, and track all admin.
Pre-year-end
Practice reconciliations means no panic at the deadline. We test, correct, and keep you compliant.
Final filings and claims
We do all the evidence packs, submit airtight claims, file early, and update you at every step.
Aftercare
If HMRC kicks up a fuss, we respond within days, not weeks. Offset issues, questions, and we sort them.
Real Example
Jenny, a company director, forgot her last EPS. We spotted it, fixed the numbers, and filed the corrected claim. HMRC accepted and paid the refund two weeks later.
Real Example
Tom, a sole trader brickie, filed online with missing statements. HMRC froze his refund until we chased the contractor, got replacements, sent a bundle—money appeared next Friday.
No movement after filing
Check that you filed the right form, correct the HMRC service, and that all evidence was supplied.
Mismatch with HMRC?
Reconcile lines, explain with simple documents—not rambling emails.
Gross payment status risk?
Fix compliance, pay debts, let HMRC know you’re sorting it out.
Contractors refusing to send statements?
Record every request, keep delivery receipts, and compile all invoices.
Company Directors
Don’t assume your company CIS gets refunded automatically—track PAYE balances, and chase every missing month. Non-exec directors need a separate summary.
Multi-Trade Businesses
You might work in plumbing and bricklaying, have different rates and contractors. Keep statements by trade, file evidence by contractor and trade.
Disputed Payments
Contractor claims to have paid CIS, but the statement’s missing. Chase firm and HMRC, provide alternate proof if necessary.
Steve’s Story
Steve’s an old-school sparky, likes things on paper. Missed two CIS statements and forgot his EPS entry. With a little pressure from Valentis, he sorted the paperwork, and HMRC paid his refund with interest for the delay.
Julie’s Example
Julie runs a landscaping crew. She kept every statement, cross-referenced every payment, and sent the neatest evidence bundle HMRC ever saw. The refund was in her account before the trade show even started.
There’s nothing magical about CIS refunds. You just need to out-organise HMRC, outpace contractor admin, and stay ahead of their questions. The more human, real-world your submission—clearly labelled, logically matched, and packed as if for someone who’s busy—the faster you’ll see your cash.
Work with accounting partners who actually know the trades, who will fight your corner, and who won’t let HMRC stall for months. Valentis gets it done because we care how business works outside an office. You work hard—make sure your refund shows up just as fast.
Ready to get started, or pissed off at HMRC for another sluggish refund? Reach out now, and let’s sort it before the cash dries up. The sooner it’s sorted, the sooner you’re back in control.